FedEx CEO: Union-Backed Bill Would Hurt Express Unit

FedEx Corp. (FDX) Chairman and Chief Executive Frederick W. Smith said Wednesday the company would stop investing in its air-service business if the U.S. Congress passes a bill making it easier for FedEx employees to unionize.

Smith also renewed threats to back out of a multibillion-dollar deal to purchase 15 Boeing Co. (BA) cargo planes if the bill, backed by rival United Parcel Service Inc. (UPS) and the Teamsters union, becomes law.

His comments, made to reporters at the company's Washington office, reflects an intensifying battle in Congress over the bill.